Welcome to illuminati silver we tell you the
truth about silver. Today is Sunday 13th November 2016 and we
are briefly addressing the issue of how gold could fall below $1200 within the next 6 weeks.
Last week, Gold prices plunged to their lowest level since the week-ending 3rd June, in reaction
to a surge in U.S. bond yields, on speculation that President-elect Trump’s economic plans
could stoke the flames of inflation. December Comex Gold futures closed the week down over
6%. There have been numerous reports from Reuters
and other agencies, suggesting that in order to gain the jobs Trump has promised, and to
fulfil his election promises, considerable infrastructure and public expenditure is required.
Coupled with reducing the legislative burden on businesses, including banks, we may indeed
see a rapid rise in both inflation and interest rates.
Some analysts argue quite cogently, that since Trump’s victory, the markets have been going
through a considerable reallocation with stocks and the U.S. Dollar rising and Treasury Bonds
and Gold prices falling. The key here is to understand the impact of
US Treasury Yields and how they are probably one of the best indicators of the direction
of gold prices. As Gold doesn’t pay an yield or a dividend, rising yields and equity prices
put pressure on the precious metal. Gold competes for the same investment dollar and investors
want to get the best return for that dollar. The cash bond market is saying that inflation
is coming and that rates will have to rise. Even you our subscribers have repeated on
numerous occasions how you are witnessing rising prices in your local stores. The Fed
has to make the decision whether to speculate on future inflation issues or stick with what
is actually happening in the economy at this time. Despite this, most economists agree,
that the FED will raise rates by 0.25% in December.
The next 6 week’s direction in gold will be determined by the direction of U.S. Treasury
yields and the U.S. stock market. If stocks and yields continue to rise then gold could
very likely break below the $1200 level perhaps as low as $1180.
If this were to happen, with silver prices generally correlating to gold on the approximate
basis of 70:1 we could also see silver fall into the mid to late $16 level.
At this stage we looked back at our predictions video of 24th February of this year where
we forecast that the gold price would move between $1100 and $1350 and silver between
$13 – $17.50. We did change this a little more to the upside post BREXIT and we did
indeed see gold peak at $1370 and silver peaked at $20.72 but interestingly it appears at
least that gold and silver are likely to end the year within the scale we set back in February.
If it does, even allowing for political issues, it suggests to us, that our analysis which
is heavily geared towards fundamentals, is quite reasonably accurate and that all the
fear the pumpers engulf us with, suggesting gold is on the cusp of rising to $5000 an
ounce and silver to $200 is just nonsense and that we are content to be just a dollar
or two wide of the mark as opposed to hundreds or thousands of dollars as they yet again
for another year will clearly have been. However, we accept, we may have to eat our
words as there is still 6 or 7 weeks to go before the end of the year.
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updates and offers. Our Facebook page which is updated daily can be found at facebook.com/illuminatisilver Disclaimer: Illuminati Silver owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of